If my item is relatively cheap to produce, with the landing price about $2. How much can I retail it for to make sense for me to manufacture and sell it at all? Thanks
Topic summary
A seller is seeking guidance on pricing a product with a $2 landing cost to ensure profitability.
Pricing Recommendation:
- Aim for $8-10 retail price minimum
- Standard markup: 4-5x landing cost
- For small/consumable items: potentially 8-10x markup
Key Considerations:
- Research competitor pricing to gauge market expectations
- Account for hidden costs: marketing, website fees, storage, returns handling, and labor
- Factor in tariffs if manufacturing in China and dropshipping to the U.S.
- Final pricing depends heavily on perceived customer value
The discussion remains open for follow-up questions.
1 Like
Hi @lenazy ,
Happy to answer your question!
For an item that costs you $2 to land, I’d recommend aiming for at least $8-10 retail price to make it worth your while.
A really great indicator is to check what your competitors are charging for similar products. This gives you a sense of what the market will bear and what customers expect to pay.
Most successful retailers work with a 4-5x markup from their landing costs, which usually gives you room to cover all those hidden expenses that add up quickly - marketing, website costs, storage, handling returns, and of course, paying yourself for your time and effort!
If your product is something small or consumable, you might even go higher with the markup (8-10x). It really depends on the perceived value to your customers.
Another thing that might be helpful to consider is tariffs if you’re manufacturing your products in China and dropship it to the U.S. (you’ll need to factor in the tariff when pricing your products). Hope this helps with your pricing decisions! Let me know if you have any other questions.